Linkhome (LHAI) stock underwent a massive rally on Friday following the artificial intelligence real estate platform’s initial public offering (IPO). Shares of LHAI stock started trading yesterday in an upsized offering. This included 1.5 million shares of LHAI sold at $4 each for total gross proceeds of $6 million. There’s also a 45-day option for underwriters to acquire an additional 225,000 shares at the IPO price.
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Linkhome said it expects to use the funds from this offering to grow its business. This will allow it to “broaden and intensify its marketing initiatives, accelerate the advancement of its HomeGPT artificial-intelligence platform and related technology, support the planned geographic rollout of its Cash Offer product, finance additional capital expenditures needed to scale operations., expand research and development, evaluate strategic opportunities” and use the money for other working capital and general corporate purposes.
Linkhome stock was up 90.94% in pre-market trading, following a 40.75% rally yesterday. Interest in the company’s IPO makes sense considering the AI boom that has affected the stock market this year. This could result in further gains for LHAI, but there’s also a chance it settles at a lower price once the IPO hype dies down.